1. The current interest rates are at 8.50%. The bond youre holding pays you $45 semi-annually for...
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1. The current interest rates are at 8.50%. The bond you’re holding pays you $45 semi-annually for the next ten years. What is the present value of your bond, which has a maturity value of $1,000?
2. Your aunt Harriet recently inherited $100,000 and she is 75 years old. She’d like to see how much money she can take annually from the investment if it earns 8% (annually). Based upon her family genes, she thinks she will likely live to 90 years old. How much can she take from this investment annually if her estimates are correct?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date: